MML Review Magazine

REVIEW

A U N I T E D V O I C E F O R M I S S O U R I M U N I C I PA L L E A G U E C O M M U N I T I E S

THE MISSOURI MUNICIPAL

July/August 2018

MML 84th Annual Conference September 16-19, 2018 Branson, Missouri

Personnel Law Government | Navigating Legislative Conflict www.mocities.com Management 1 Municipal 101The • Positive Policing Arena • Annual| Conference Photos

Missouri Securities Investment Program A Cash Management Program for School Districts, Counties, Municipalities and Other Political Subdivisions

The Missouri Securities Investment Program (MOSIP) is a comprehensive cash management program for school districts, counties, municipalities, and other political subdivisions. MOSIP was created in 1991 by the Missouri School Boards Association.

MOSIP offers its investors a professionally managed portfolio with competitive money market rates. MOSIP stresses maintaining safety, liquidity and yield as the primary investment objectives.

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77 West Port Plaza Drive • Suite 220 • St. Louis, MO 63146 • 1.800.891.7910 • www.mosip.org This information is for institutional investor use only, not for further distribution to retail investors, and does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security.

Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Missouri Securities Investment Program’s portfolios. This and other information about the Program’s portfolios is available in the Program’s current Information Statement, which should be read carefully before investing. A copy of the Information Statement may be obtained by calling 1-877-MY-MOSIP or is available on the Program’s website at www.mosip.org. While the MOSIP Liquid Series seeks to maintain a stable net asset value of $1.00 per share and the MOSIP Term portfolio seeks to achieve a net asset value of $1.00 per share at the stated maturity, it is possible to lose money investing in the Program. An investment in the Program is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Program’s portfolios are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra. org) and Securities Investor Protection Corporation (SIPC) (www.sipc.org). PFM Fund Distributors, Inc. is a wholly owned subsidiary of PFM Asset Management LLC.

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theReview July/August 2018

THE MISSOURI MUNICIPAL

July/August 2018; Volume 83, No. 4

CONTENTS Features 4 The Ten Commandments Of

Personnel Law

by Ivan L. Schraeder

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8 Conflict Management For Local Officials

by Ron Holifield

10 Navigating The Legislative Arena

by Richard Sheets

12 The Value Of Defined Benefit Plans

by Joan Jadali

15 Missouri's New Apprenticeships:

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Drinking Water And Wastewater

by Missouri Rural Water Association

Protecting Your Organization From Computer Crime

by Michael Bazzell

MML 84th Annual Conference

Departments 32 Local Gov Review: Mayors'

Meetings And Elected Officials Training Conference

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FAQ: Property Taxes

36

Getting To Know You: Shelly Moore and Ben DeClue

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MML Calendar Of Events/ Members' Notes

Cover Photo: Hilton Branson Convention Center, Branson, Missouri

MISSOURI MUNICIPAL LEAGUE BOARD OF DIRECTORS President: Mayor Matthew G. Robinson, Hazelwood; Vice President: Council Member Chris Lievsay, Blue Springs; Eric Berlin, City Administrator, North Kansas City; Rob Binney, Council Member, Lee's Summit; Paul Campo, Attorney, Williams and Campo, PC; Sally Faith, Mayor, St. Charles; DJ Gehrt, City Administrator, Platte City; Barry Glantz, Mayor, Creve Coeur; Tim Grenke, Mayor, Centralia; Debra Hickey, Mayor, Battlefield; *Bill Kolas, Mayor, Higginsville; Donald Krank, Council Member, Black Jack; *Norman McCourt, Mayor, Black Jack; Marcella McCoy, Finance Director, Harrisonville; Susan McVey, Council Member, Poplar Bluff; Cindy Pool, Council Member, Ellisville; *Immediate Past President Kathy Rose, Mayor, Riverside; *Carson Ross, Mayor, Blue Springs; Scott Wagner, Council Member, Kansas City; Eileen Weir, Mayor, Independence; *Gerry Welch, Mayor, Webster Groves; Jeanie Woerner, City Clerk, Raymore *Past President AFFILIATE GROUPS Missouri City Management Association; City Clerks and Finance Officers Association; Government Finance Officers Association of Missouri; Missouri Municipal Attorneys Association; Missouri Park and Recreation Association; Missouri Chapter of the National Association of Telecommunications Officers and Advisors; Missouri Chapter of the American Public Works Association; Missouri Association of Fire Chiefs EDITORIAL Laura Holloway / Editor Lholloway@mocities.com Dan Ross, Richard Sheets, Lori Noe Contributing Editors The Review July/August 2018; Volume 83, No. 4 The Missouri Municipal Review (ISSN 0026-6647) is the official publication of the Missouri Municipal League state association of cities, towns and villages, and other municipal corporations of Missouri.

Publication office is maintained at 1727 Southridge Drive, Jefferson City, MO 65109.

Subscriptions: $30 per year. Single copies: $5 prepaid. Advertising rates on request.

Published bi-monthly. Periodicals postage paid at Jefferson City, Missouri.

Postmaster: Send form 3579 to 1727 Southridge Drive, Jefferson City, MO 65109.

To contact the League Office call 573-635-9134, fax 573-635-9009 or email the League at info@mocities.com.

Website: www.mocities.com.

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FEATURE Review

by Ivan L. Schraeder

The Ten Commandments Of Personnel Law This article is not intended to be a comprehensive treatment of the subject matters presented, but is intended to highlight areas of potential liability for municipalities if they are not aware of and attentive to the risks associated with the applicable federal and state employment and labor laws.

This provision will not be affected by the August 2018 election related to the rightto-work laws subject to be challenged from last year’s legislative enactment.

#1. Thou shalt know what the “right to work” law means for public employers.

As this article was going to print, the U.S. Supreme Court issu e d it s d e c is i on #2. Thou shalt in Janus v. AFSCME conduct thorough Council 31. This case background determined that forced checks. payment of dues or fees One of the larger by public employees exposures for liability to their collective are employees of a local governmental bargaining representative is a violation of entity. In any employment situation the public employees’ First Amendment when persons are being considered rights of free speech. The impact of this for employment, it is important to decision is that no public employer can The question is not if conduct a thorough background check legally negotiate a mandatory dues or to verify what appears on resumes and fees payment to be taken involuntarily you will have a personnel/ application forms. What is represented from public employees to be paid to employment problem, but by applicants may not always be accurate. the bargaining agent as a condition of What certifications and licenses may be employment. Only voluntary acts by when you will have one. claimed to support an application may employees are permitted if carefully ~ Ivan Schraeder not always be issued. While Missouri drafted. There are more principles in this is not a state that has fully accepted 5-4 court decision, but this is the primary the concept of “negligent hiring,” it is a takeaway. Any public entity that has a minority in that regard. mandatory membership or fee provision needs to remove such provisions from the In conducting background checks, it is appropriate collective bargaining agreements and policies immediately. to inquire as to convictions for crimes and under some circumstances as to financial dealings. However, caution must In Missouri, no public employee can be forced to pay be taken in using what is discovered. Generally, what may be membership dues to any labor organization as a condition of used must be considered in light of the job to be performed so employment that includes provisions in collective bargaining as not to have a disparate impact on some protected classes. agreements. Employees can make voluntary payments Also, when using financial information for employment consistent with the public employer’s policies as to voluntary decisions, there are regulations that relate to protections of payroll deductions, but not as a mandatory requirement.

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applicants and procedures for a rejected candidate to challenge the decision. While caution is urged, it should not create an excuse not to conduct a background check.

All employees should be subject to the same process for screening so as not to create a discriminatory system allowing for litigation and recovery.

#3. Thou shalt not discriminate for illegal reasons.

When engaging in the process of screening candidates and for making employment decisions related to current employees, a public employer needs to take care not to discriminate against an applicant or employee for illegal reasons. These protections are set out in the state and federal anti-discrimination laws, as well as some of the employee benefit laws. Missouri recently adopted statutory changes related to discrimination that changed the standard for assessing discriminatory conduct from that of a “contributing” factor to that of a “motivating” factor effective as of Aug. 28, 2017. This change makes Missouri law consistent with the federal law standards.

The new standard makes the discriminatory conduct as the primary motivator for an employment action rather than as one of a number of conduct measures to be considered including the discriminatory conduct.

The new amendments to the Missouri law also change available award levels for employee recovery and relieves individual supervisors from liability, but not the employing agency.

#4. Thou shalt not have sex in the work place.

This specific discriminatory standard, sex or gender discrimination, has had greater exposure in recent years because of the “Me Too” movement, but gender discrimination has been illegal for decades. Employers should not be making employment decisions or allowing any employment conduct to impact employees that is based on sex. There are two types of sex discrimination – quid pro quo (supervisory/managerial pressures on an employee based on sex) and harassment (based on conditions created in the work place by persons relating to sex that are not addressed by the employer). Current law requires specific policies to be implemented by employers related to protections against sex discrimination and for providing special processes for employees to make claims for relief.

Evolving trends in other jurisdictions have addressed sexual preferences and sexual identification as being protected, but Missouri has not officially adopted such

protections. Employers, though, would be wise to consider all types of discriminatory activities for protections so as to avoid being the test case in areas where the evolution continues to expand how sex discrimination is defined.

#5. Thou shalt take care when limiting employee speech and use of social media.

Public employers are encouraged to adopt policies related to the use of employer equipment and the transmission of information through the employer’s electronic systems and employees’ use of social media related to the work place or while in the work place or in duty related activities. Public employers can regulate employee use and conduct provided it is related to the terms and conditions of the employee’s duties and responsibilities. Public employees have protectable First Amendment rights of free speech and association under both the U.S. and Missouri Constitutions, but these are not unlimited protections. Use and access to an employer’s electronic systems needs to be restricted to performance of official duties and not permitted for personal or private use.

Anything that is put on the employer’s system is subject to the Missouri Sunshine Law unless specifically determined to be a closed record under the Sunshine Law requirements.

Employees often mistakenly believe that their personal devices are not subject to control or access by employers. U. S. Supreme Court case law says otherwise.

Employees can be prohibited from using an employer’s equipment and systems to disparage elected officials and other persons. Employees can be prohibited from criticizing

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public employer decisions and issues under consideration without violating employee rights.

To avoid liability, clear policies should be considered and adopted managing the electronic systems’ access and use, as well as distribution of closed records and other protected information. This is another field evolving from discovery activities associated with litigation, as well as scrutiny of public officials and employees for the misuse of electronic communications.

#6. Thou shalt pay overtime when it is due.

Public employers are covered by the Fair Labor Standards Act that requires payment for overtime to employees who work in excess of their regular schedules that can be a 40-hour work week or up to a 28-day cycle for law enforcement and fire service employees. When overtime is reached, a public employer is required to compensate an employee with either pay at time and a half the regular hourly rate of pay for the employee or to allocate compensatory time at the rate of time and a half for each overtime period worked in excess of the designated work period. Employees have a maximum amount of compensatory time that can be accumulated depending upon the type of employee to be considered.

Accurate time records must be maintained by the employer.

In the absence of properly kept records, an employee’s records will serve to determine what overtime was worked and what the employer’s liability is. Employers also need to determine by policy what “time worked” means for reaching overtime payment eligibility. The penalties for non-payment of overtime are significant at double the unpaid amounts plus attorney fees of the employee if litigation is undertaken. It

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should also be noted that when the federal agency comes in to inspect overtime records, it is not limited to just looking at overtime records, but it may also look at all other records related to employment matters under its jurisdiction. A public employer is better protected from liability to work in advance to have its records and overtime systems created properly and with its policies in place for employee viewing.

#7. Thou shalt know that the Sunshine Law sometimes applies to personnel matters.

Public employers often believe that their personnel records and employee personnel actions are automatically closed records under the Sunshine Law. This is an incorrect belief. The Sunshine Law requires governmental bodies to take specific actions to close records that can be closed but are not closed without such actions. If the municipality has not taken actions to close records, those records are presumed to be open. Caution is urged when dealing with employee personnel records and actions so as not to expose the jurisdiction to successful litigation for access to such records or for consequences from employees whose records were not protected.

#8. Thou shalt know that loose lips create personnel lawsuits.

Disgruntled employees are regularly looking for ways to obtain recovery from employers when they are not pleased with their work environments and conditions created by supervisors, managers and elected officials. This is especially true when discriminatory allegations are possible. All employer representatives should be cautioned not to discuss employee-related issues and concerns except with persons who have a “need to know.” Often there is a tendency to share more than is needed and to share with persons who have no need to know.

Supervisors, managers and elected officials Building Department should never discuss personnel matters Services in open sessions or with anyone who is not involved in the decision-making process. There should be no exceptions to this rule. Litigation for defamation is a potential cause of action that can be coupled with other causes of action by Flood Plain & employees who seek recovery for real Stormwater or imagined wrongs engaged by their Services employer or its supervisors, managers and elected officials. In short, supervisors and managers speak as if they are the employer regardless of the relative position in the employer’s hierarchy.

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theReview July/August 2018

#9. Thou shalt take care to comply with ADA and FMLA and workers’ compensation laws.

Employers are reminded that workers’ compensation laws, the Americans With Disabilities Act, the Missouri Human Rights Act, and the Family Medical Leave Act provisions are interrelated and often intertwined in employment decisions that relate to health care questions and decisions impacting employees for health-related concerns, whether physical or mental in nature. To insure that a public employer has properly addressed each of the concerns of these laws and employee rights under each, clear policies should be considered and adopted to avoid later legal problems and/or the inability to properly address employee requests for relief.

Employers have multiple options for decision making when it comes to employee problems associated with health-related needs for absence from work. This applies whether such absence is occasioned by work–related injury or illness, or for non-work-related considerations, and for whom such leave may be taken for what periods of time and what records are required/desired to address requests. Consideration may also be made for health insurance coverage, pension benefits, long- and short-term disability program eligibility, and other employee benefits controlled by decisions made under each or all of the above noted laws. Protections for employees are also available for retaliation when an employee seeks benefits under each of these laws and the employer takes negative employment action that appears to be in response to the request made.

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timely topics of municipal concern specific to Missouri local governments.

Ivan L. Schraeder is an attorney who concentrates his practice in labor and employment law and collective bargaining for public employers in Missouri and Illinois. Schraeder is a frequent presenter on labor law topics for the Missouri Bar Association, MML, and the Municipal Attorneys Association.

Communities across Missouri trust the Power of PeopleService.

#10. Thou shalt keep your attorney’s phone number close at hand.

This commandment is not made to increase your counsel’s income, but rather to reduce a community’s potential liability for wrong decisions or the absence of policies that could have prevented the liability from arising in the first place. Your city attorney will either know how to help you in creating preventative measures or will know where to find the qualified talent to do so. Your city attorney will either know how to mitigate exposure that has been incurred or know where to get the help you may need. Keep the telephone number handy.

The question is not if you will have a personnel/employment problem, but when you will have one.

If your city attorney is not a member of the Missouri Municipal Attorneys Association, a municipality should require the membership and encourage/direct the city attorney to attend the annual MMAA conference to obtain current updates on employment/labor law, as well as on other

PeopleService.com • 877-774-4311 Ext. 5

www.mocities.com

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FEATURE Review

by Ron Holifield

Conflict Management For Local Officials

Conflict has always come with the territory of serving in office. Indeed, conflict is simply a part of the human condition. However, over the last few years public service has devolved from “hard” to “brutal” as the conflict has become more mean-spirited and almost impossible to manage. I have been working with elected officials for almost 40 years and without any doubt, this is the toughest, most brutal time to serve your community that I have experienced.

Dealing with those who are driving the conflict brings to mind the old adage about wrestling a pig – eventually you realize that both of you are covered in mud and the pig is enjoying it. It can be emotionally wearying just to endure the constant slings and arrows of trolls who thrive on creating conflict as an end to itself. It is even more frustrating and hurtful when it is a colleague on the council modeling the worst behaviors of divisiveness.

Sometimes you can feel so ground down that it becomes easy to forget that you originally ran for office because

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The personal cost of leadership has never been so high; but, the need for character-driven leaders who put service above themselves has never been more critical. ~Ron Holifield

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you love your community and wanted to create a future that is better than it would have been without your influence. Sometimes just surviving the daily onslaught of incoming social media slime missiles can take all you have just to get through the next meeting.

Managing the political insanity can feel like “mission impossible” with no simple answers. But Ronald Reagan was

right when he said, “There are no easy answers, but there are simple answers.

We must have the courage to do what we know is morally right.”

There really are simple answers to managing conflict as an elected official, but they are not easy answers.

The simple answer is to rise above the pettiness and political “gotchas” and lead like the authentic servant leader you know in your heart you want to be. Find your true north and follow it.

Be true to your core values regardless of how loud the critics are. In the short run, it will be brutal as the rock throwers try to intimidate you. But in the long run, being an authentic servant leader will actually reduce the conflict and build deeper support among a broad base of your community who yearn to follow character-driven leaders.

The personal cost of leadership has never been so high; but, the need for character-driven leaders who put service above themselves has never been more critical. Walking the talk of authentic servant leadership really is the simple answer for the dysfunctionality

and hatefulness that inspires so much civic discourse these days.

I realize that the forces of hatefulness and mediocrity make walking the talk difficult – the rock throwers do not want you to thoughtfully deliberate, they want you to obey. If you have the courage to be true to your values, 11 simple commitments will provide you the path for success.

Because I am committed to creating a future that is brighter and healthier and more beneficial to all citizens, I will: • Base my decisions on the next generation more than the next election, committed to the ideal that my loyalty must be to the entire community (both now and in the future) and not merely to those who selected me.

• Focus on mission, vision and values as the benchmark for my decisions and recognize that my responsibility is the pursuit of the greatest good for the entire community and not the satisfaction of any particular group’s agenda.

• Make decisions based on factbased evidence and not allow myself to be manipulated into bad decisions for the future based on the decibel level of critics.

• Recognize that “it takes a smart man to know where he is stupid” and have the wisdom to be smart.

Accordingly, I will value those who have the courage to tell me what they really think and will listen sincerely to those who disagree with me to truly understand their perspective, recognizing that understanding other perspectives makes me a better leader.

• Embrace my responsibility to govern rather than to manage; recognizing that if I am doing staff ’s job I am not doing my job, while also understanding and embracing the appropriately exercised governance role of holding staff accountable.

• Place a greater emphasis on solutions than on the problem;

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This workshop will equip local government leaders to know what authentic servant leadership looks like, why it is the right culture for your organization's future, and how to build a system of systems to walk the talk by assessing and developing a foundation of self and team.

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while refusing to offer solutions before I understand the problem.

Understand that mutual trust is the foundation for everything and that if I refuse to trust others, they will be unable to trust me.

Protect the integrity of the process more than the rightness of my position; I will fight hard for my issue but then unify behind the governing body when the decision is made, because the decision was made with integrity of process, even if I disagree with the outcome.

Understand that my deeply held beliefs, values and positions will be strengthened, not compromised by courteous, respectful and civil discourse. I will not treat someone as the enemy just because we disagree.

Treat everyone with dignity and respect because of who I am as a leader, not because of how they treat me or what I think about them.

Be a role model for civility. I will not treat my colleagues or staff in any way that I would be embarrassed if my five-year-old

child treated someone the same way.

May you have the courage to walk the talk of an authentic servant leader, and in so doing leave a legacy that matters.

Ron Holifield is CEO of Strategic Government Resources (SGR) that helps local governments recruit, assess and develop innovative, collaborative, authentic leaders. Holifield's current clients include more than 550 local governments in 47 states. Holifield has also provided strategic consultation to some of the leading companies in America, including American Express, Xerox, IBM, PeopleSoft, Verizon, Aramark, Space Imaging, NASA and many more. He previously served almost two decades in city management with six different cities. Learn more at www.GovernmentResource.com.

Holifield’s weekly 10 in 10 Update on Leadership and Innovation has more than 60,000 readers. His second book, 4th Dimension Leadership: a Radical Strategy for Creating an Authentic Servant Leadership Culture, has just been published and is available on Amazon. Contact him at Ron@GovernmentResource.com.

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FEATURE Review

by Richard Sheets

Navigating The Legislative Arena for municipalities in To m a n y, t h e the Capitol, meeting legislative process in and working with Jefferson City often Create your own cartoon at www.projectcartoon.com a Bill Become a Law state legislators and appearsHow to be defective staff, attending and and broken. The reality monitoring the activity of is, there are just a lot of legislative committees and cooks in the legislative coordinating municipal kitchen. Although testimony and grassroots individual legislators efforts. The League may have pet peeves or also publishes a weekly agendas that initiate some "Capitol Report" during legislation, most of the the legislative session to bills introduced during communicate important a legislative session are legislative issues to offered by legislators municipal officials that responding to requests the League advocacy team f rom sp ecial interest As Sent to the Governor As Passed by the Senate As Amended by Senate is following at the Capitol. groups. These special Committee interest groups consist of During the legislative organizations representing session, the Missouri all aspects of American Capitol is a very busy life. Think of a profession place, full of legislators, or occupation, a business, lobbyists, students, tour a charity, a municipality, a groups, legislative and county, a school district, a d m i n i s t r at i v e s t a f f , water districts, a fire and constituents. It can district, a university, be an intimidating and a religion, retirees, confusing place in which ve te r ans , sp or t s me n , to ef fectively talk to environmentalist, etc., and legislators. However, as you will find a group(s) a municipal official, you advocating on their behalf. can be a key influencer As Passed by the House As Amended by the House As the Bill was Originally We are a nation of special o f p o l i c y. Yo u h a v e Committee Introduced interests. the experience and Cartoon created at www.projectcartoon.com. information your legislator Accommodating all the needs to hear, and your wants and concerns of these First, you have the Missouri Municipal physical presence shows your support varied groups often results in laws that League in your corner. The League for important issues that affect cities are awkwardly worded and subject to actively advocates for hundreds of bills and towns. multiple interpretations. each year on a wide range of legislative Although visits to the Capitol during How does a local government issues of interest to municipal officials. the legislative session can be effective, official whose communities are directly The MML Advocacy team serves as the most important lobbying is done at affected by the laws passed in Jefferson representatives of League members home, in your legislator’s home district.

City make a difference in the crowded at the Missouri General Assembly.

Lawmakers need to hear from their legislative arena?

This involves serving as a presence

How A Bill Becomes A Law

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constituents. Effective lobbying requires multiple contacts and follow-ups.

The Legislative Staff It is important to get to acquainted with the staff members assigned to legislators, their aides, secretaries and committees. Often you will need to meet with your legislator’s aide. They can give legislators feedback on “hot button” issues. Get to know them because you will need to work closely with them.

Always Identify Yourself Public officials and their staff meet a lot of people. It is impossible for them to remember everyone. Be sure to always identify yourself at every contact and remind them of your special interest.

Familiarize Yourself With The Issues Be aware of the status of each bill that pertains to your subject or issues. Check the bill’s status daily.

Know Your Local Legislator Study their past record on related issues. Learn what is important to your legislator. What are their interests and committee assignments?

Try to determine the most effective

approaches to gaining their attention.

Ask yourself what would make your issue compelling to them. Take time to identify any prior commitment that your legislator may have had to your cause. Always encourage legislators to promote support for your cause among their colleagues.

Acknowledge Commend legislators for any positive action on your issue or concern. A phone call or sending a personal note is an effective way to say thank you. Be quick to commend and slow to criticize.

Being critical is seldom beneficial unless done in a constructive manner. If you are opposed to an action taken by your legislator, always provide alternative solutions. Remember, the legislator who votes against your position today may support your position tomorrow.

Presentation Of Your Case Do your homework and make sure that you have all of the facts but be brief with your appeal. Work with your legislators – do not confront them. Remember, they lobby other legislators to support or oppose your issue. Always come prepared with written documentation that supports your position for your legislator.

Keep literature and information brief.

Provide material that is easy to read

with main points highlighted. As a common courtesy, be sure to turn off or place your cell phone on vibrate during your meeting.

Follow Up Periodically We are all busy people. Stay in touch with your lawmaker and provide a brief reminder about your position to your legislator since thousands of bills are considered each session.

The Negative Legislator If a legislator responds negatively to your issue, never overreact or become emotional. Always keep the door open for the future. Many times, a legislator will change their opinion after learning more information. Remember to talk to your adversaries as well as your advocates. Never take any vote for granted. If you are going to oppose someone’s bill, tell them. Often a compromise can be worked out that will benefit both parties. You may gain a supporter!

Richard Sheets is the deputy director of the Missouri Municipal League. Contact him at (573) 635-9134 or Rsheets@mocities.com.

MML Lobbying Team Contact Us! (573) 635-9134 Rsheets@mocities.com

Richard Sheets Deputy Director MML

Shanon Hawk Dir. Legislative Affairs AT Government Strategies

Katie Bradley Legislative Associate MML

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FEATURE Review

by Joan Jadali

The Value Of Defined Benefit Plans How And Why The City Of Webster Groves Moved From A Defined Contribution Plan To A Defined Benefit Plan In 2013, the city of Webster Groves joined the Missouri Local Government Employees Retirement System (LAGERS), a statewide, public-defined benefit retirement plan covering local government workers from employers all across Missouri.

This is our story of why and how we made this giant leap forward in providing retirement benefits to our employees, and, we believe, ultimately enhancing service to our citizens.

Background In 1998, the city of Webster Groves converted from a defined benefit (DB) plan to a defined contribution (DC) plan for both non-uniformed and uniformed staff. The overarching belief at the time was that defined contribution plans were better because employees could personally be rewarded with significantly high market returns in a time when stock market returns were in the range of 23 percent to 37 percent in the preceding three years.

Markets plummeted in 2008. Many DC plan participants lost at least a quarter of their investments initially.

For those employees who were planning to retire within the next year or two, this drastically impacted their financial readiness for retirement. While employees were able to personally accumulate healthy account balances in the 1990s, they were now forced to

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security for our members and give them a track to security with a benefit structure that rewards them, as service to the community increased.

Choosing LAGERS

deal with the fact that the market swings both ways.

Senior staff at the City decided to research other pension options available for city employees in 2009.

They reviewed a number of articles from professional journals; held many conversations with city staff and met with professional consultants; and advisors on both the DB and DC side of the platform.

Employees generally were not comfortable bearing the investment risk and responsibility of their individual plans, even though they were offered the opportunity to meet quarterly, or more frequently if requested, with investment advisors.

Ultimately, we were looking for a solution that would more effectively serve employee needs and better utilize resources while enhancing employee performance and morale. We wanted to assist in providing future financial

The key attraction to LAGERS is their detailed, solid plan design and reputation for efficient administration. Also, the pooled disability and survivor benefits provided by LAGERS is extremely attractive for members. This is viewed as a great safety net for younger employees. We did an extensive review and everything kept turning up positive. The knowledge, experience and expertise of the entire LAGERS administrative and investment team was impressive. Retirement system administration is incredibly complex and requires a very specialized skill set.

LAGERS represents approximately 700 separate employers across the state, with more than 100 in the eastern (St. Louis) region. Assets under management are more than $7 billion. Due to the asset size of the fund, investment opportunities are available that are not available to smaller investors, and lower fees for external investment managers can more easily be negotiated. At the time the City joined LAGERS, the plan’s funded ratio (assets compared to liabilities) was 86.5 percent (it now stands at 94.8 percent funded)—a very healthy plan position.

All service with LAGERS-covered employers counts toward a member’s overall final retirement benefit, so not participating in LAGERS was working against us in recruiting and hiring. We knew competing employers were successful in using LAGERS as a recruitment tool. LAGERS’ plan design/funding mechanism is complex, well structured and secure.

The system annually reevaluates all required contributions and makes any adjustments to ensure full benefit funding. They have a number of detailed system safeguards (gain smoothing, statutory limits on annual contribution rate increases, etc.) to lessen volatility in employer contribution rates.

The Process Of Converting To LAGERS In order to educate employees and get the buy-in to the change, LAGERS staff presented the plan to city staff at six different meetings to provide an opportunity to reach as many employees as possible.

After a short period of time following the last session, we asked employees to vote – 93 percent of employees voted in favor of joining LAGERS. We felt confident the employees were welleducated on the issue and made the right choice. The City Council adopted a resolution to join LAGERS as of July 2013.

City employees were provided an opportunity to roll over funds from the previous DC plan (and use any other personal funds) to purchase their prior city service and receive that service credit under LAGERS. Many employees did and continue to have the opportunity.

Results As a result of joining LAGERS, the City has seen many positive results: • Morale has increased. With increased morale comes increased productivity and service to the community.

• We have added a significant

Missouri LAGERS

LAGERS members work hard. And each month of hard work helps them get a little closer to a dignified, secure retirement. LAGERS members are thousands of police officers, firefighters, librarians, utility & maintenance workers, and other public servants located in every corner of Missouri, serving their communities every day.

You work hard for your community.

We work hard for YOU. Missouri Local Government Employees Retirement System 1-800-447-4334

Visit www.molagers.org to learn more.

Comparing DC and DB Plans Benefits of DC Plan

Challenges With DC Plan

Employee perspective: *Benefits may be withdrawn under certain circumstances.

Employee perspective: *No guarantee of a certain benefit level.

*Benefits are portable (recruitment tool).

*Investment risk is assumed by employee.

Employer perspective:

Employer perspective:

*Contributions are known and fixed.

*Adverse experience in employee investments can impact employee retirements.

Benefits of DB Plan

Challenges with DB Plan

Employee Perspective:

Employer perspective:

*Steady stream of income during retirement.

*Requires actuarial services; might be costly.

*All investment-related risk is borne by the employer.

*DB plan contributions are less predictable, based on many uncertain factors such as workforce demographics, mortality, return on investment and inflation.

*Benefits are known and secure. *Cost-of-living adjustments to keep up with inflation.

www.mocities.com

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recruiting tool that allows the City to remain competitive in hiring into the future.

• Employees are retiring, generally, when they are eligible rather than continuing to work indefinitely due to the security of the lifetime benefits.

• The economic impact of benefits paid to retirees to the community and to the taxpayers who help fund the benefits is significant— approximately $500,000 in benefits are paid annually to those retirees residing in Webster Groves alone.

In 2017, the LAGERS team came to the City and interviewed several employees, as well as Mayor Gerry Welch, to inquire about employee’s experience in switching from the old DC plan to LAGERS. They all provided highly positive feedback and commentary, but perhaps Mayor Welch summed it up best:

"

You can have a city where you have the most expensive ... equipment possible. That doesn't make any difference if you don't have good, skilled employees who really care about the service that they provide.

"

~ Mayor Gerry Welch, Webster Groves

skilled employees who really care about the service that they provide.”

We feel confident that providing employees with a secure means by which to retire when they are ready only further enhances the valuable services they provide to the community.

Joan Jadali is the assistant city manager and director of finance and administration for the city of Webster Groves. She has served in this role for over 11 years. Jadali is a member of the Government Finance Officers Association (GFOA) Committee on Retirement and Benefits Administration. She is a recipient of the Retirement Plan Associate (RPA) designation from the International Society of Certified Employee Benefit Specialists. Jadali is also a board member of Missouri LAGERS.

“Here’s the bottom line in all of this. You can have a city where you have the most expensive, wonderful ambulance, snowplows and other equipment possible. That doesn’t make any difference if you don’t have good,

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theReview July/August 2018

FEATURE Review

by Missouri Rural Water Association

Missouri’s New Apprenticeships: Drinking Water and Wastewater

issue, necessarily, but rather of a lack of asset management. Finally, go on a search for a fully competent water or

wastewater employee and you will find their value is far above rubies.

Therefore, offering the opportunities i n t h e i n du s t r y to b e recognized as a responsible professional will demand that the employee be a responsible professional. The apprenticeship program allows the individual t he opp or tunity to demonstrate full competency and professionalism … not just by “passing an exam.” Who do you want taking

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In November 2017, Missouri was the second state in the nation to achieve U.S. Department of Labor approved apprenticeship programs for drinking water and wastewater. These are two-year apprenticeships that can allow any level of drinking water or wastewater operators to achieve Journeyman as a Drinking Water Specialist or Wastewater Specialist.

What could it mean for your city? Driven by the circumstances of waning interest in colleges and universities, a growing interest in trades, and the aging workforce issue in the water industry, it is obvious that two things need to occur: professionalism and attracting young people. For too long, the drinking water and wastewater occupations have been viewed as a “maintenance” occupation.

However, the truth is that these individuals hold more responsibility for public health than any number of medical facilities. Drinking water, the second most necessary thing in life after breathing, and wastewater, one of the first harbors of potential public disease, present themselves to us as proactive health professions rather than reactive medicine. Even after high-profile incidents such as Flint, Michigan, and the misinformed convenience of bottled water, we recognize that these professions should be acknowledged with greater respect and dignity and should present themselves as health occupations rather than a “maintenance position.” Likewise, we are amidst many municipalities with infrastructure issues that are not of a maintenance

The choice of a lawyer is an important decision and should not be based solely on advertisements.

www.mocities.com

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care of your drinking water and treating your wastewater?

How does this apprenticeship work?

The apprenticeships are fully approved by the U.S. Department of Labor and were created and administered by the Missouri Rural Water Association (MRWA). Don’t let the name fool you.

MRWA is proud of its rural heritage, yet as the only professionally field-staffed water and wastewater organization that provides on-site technical and managerial assistance and training, MRWA is there for all systems of all sizes and works proactively for the entire water industry.

The apprenticeship program is based as a two-year program. It is divided into six-month increments and, as the apprentice works through the program and successfully completes a six-month module, then they receive a pay raise. The program requires components of on-the-job training and in-classroom training. It is also requires

the apprentice to pass a drug screening to enter the program and to successfully acquire Missouri certification in their chosen field. Upon completion, the apprentice, then, receives the designation of Journeyman in either the drinking water or wastewater field. You can be assured that this individual has received hands-on training, classroom training, and the experience to be an outstanding performer.

Additionally, there are many economic development programs to

help you, the employer, in assisting you to train your apprentice. If you have interest in placing an employee in the Water or Wastewater Apprenticeship Program, or if you have interest in hearing from apprentices for potential hire, contact Jim Enterline with Missouri Rural Water Association at jenterline@moruralwater.org , via cell phone at (573) 996-6096, or contact the MRWA office at (573) 657-5533.

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theReview July/August 2018

Why Should You Visit MML's Website?

pro tip For matters like

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Public Sector Value-Added Services Cybersecurity Brown Smith Wallace cybersecurity professionals help our clients prevent, detect and respond to cybersecurity attacks and data exposures that challenge organizations. All too often, organizations are unaware of the cybersecurity risks they face and are unable to manage risks in the event of a data breach.

KEY SERVICES: Security Risk Assessments Penetration Testing Internal Vulnerability Assessments Email Phishing and Social Engineering Cybersecurity Control Assessments PCI DSS Compliance

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theReview July/August 2018

Bill Gogel, QSA, CISA, CBRM, ACDA Manager, Advisory Services 314.983.1363 bgogel@bswllc.com

Connect With MML!

WE KEEP COMMUNITIES FLOWING Missouri American Water is proud to sponsor the Missouri Municipal League and to invest $80–$130 million annually in our 160 communities.

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ANNUAL CONFERENCE Review

by Michael Bazzell

Protecting Your Organization From Computer Crime Online fraud changes every day. We are seeing the evening news transition from reports of violent crimes to details of the latest cyberattack. Cyber criminals adapt their techniques constantly in order to always stay one step ahead of victims.

Lately, most hacking groups focus on stealing a large amount of data from companies. This may be credit card numbers, login credentials, or private personal information such as Social Security numbers.

The groups find it much more lucrative to put the time into stealing large databases of information instead of targeting individuals. Recent attacks, such as those against Equifax and other high-value targets, are typical of these cases.

In these attacks, criminals steal the details of millions of people, causing great financial loss. However, these attacks are much less common than the smaller attacks that rarely make headlines. For every large entity that is compromised, hundreds of smaller organizations’ servers are exploited.

I believe the most probable attack against smaller organizations is targeted email spear-phishing. Standard phishing has been around for many years. When you receive an email that appears to be from your bank, it is likely a phishing attack. These messages use a scare tactic to make you think that your account has been compromised, and provides an internet link that will allow you access to your account to protect your money. Of course, the link forwards to a cloned website that is visually similar to the real bank website, and the criminals hope that you provide your user name and password to gain access. As soon as you do, they access your real account and do as much damage as possible in a short amount of time. Spear-phishing takes things to a different level.

How Would I Hack You? The following is a scenario that I would use if I were going to target a specific entity as a criminal hacker. This is based on my experience investigating these types of incidents.

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theReview July/August 2018

I would do my homework and research the entity. I might look up current and previous hiring opportunities for a position such as computer technician or network administrator.

These posts probably include a reference to the type of systems that are present, such as the operating system of your network or the type of database that is used. It is common for a recruitment post to mention required skills such as “SQL Server Administration” o r “M i c r o s o f t E x c h a n g e Administration.” Both of these tell me enough about your environment to start an attack.

I would then create a list of employee names that I want to target. I would do this through Facebook, Twitter and LinkedIn. In my presentations, I show how a hacker can create a list of more than 75 percent of a business’ employees by scraping these social networks in less than five minutes.

I would then locate a few official email addresses from the company’s website in order to identify the format of all email addresses for the employees. For example, if I find Bob Wilson’s email address is b.wilson@company.com, I know that Mary Johnson is m.johnson@company.com, and Tom Williams is t.Williams@company.com. I would use Excel to generate the list for me.

Now that I have the email addresses of my targets, I would generate a custom bulk message similar to the following.

Dear employee, As you may know, our Microsoft Exchange Server was partially compromised in an early morning attack. Fortunately, all of your information is safe; however, we need you to reset your password immediately. Any accounts that have not been converted by the end of the day will be disabled. Please click the following link to update your account. www.secure-email-server-company.com This email would be sent from a free program that will “spoof ” an email address and name to be anything desired. I

would search on LinkedIn to find the name of your computer network administrator and make the email appear to be from him or her. The shady link in the message would forward to a server that I have full access to. As soon as you log in, I have your current credentials to your email account. I would use these to access your real account and look for bank statements, company accounts, etc. I might even send a quick note to everyone in your contact list telling them that I (you) are stuck in the U.K. and need $1,000 to get a new passport.

I only need one person to respond and wire me money to make it worth my effort. If this message was not appropriate for your organization, I might choose something similar to the following.

Dear employee,

the information. While challenging others is often considered rude, it may save you from becoming the next victim.

Also, be careful about the content that you post online. If your Twitter account mentions your upcoming vacation to Hawaii, you are helping a burglar. If your LinkedIn account summarizes your duties at your workplace, you are helping a potential cyber attacker. If your Facebook page has photos of your child with a nickname of “Mikey,” and your security question on your bank account is “What is my son’s nickname?”, you are really asking for trouble. Surprisingly, hackers have all of the time in the world to identify the smallest of vulnerabilities in your life.

Overall, I know that we cannot stop all computer crime.

However, I truly believe that you can prevent it from happening to you. Following some general rules will prevent you from being the easiest target for a close eye on your online activity will help you avoid becoming the next victim on my incident list.

As you know, we have finished the migration to the new payroll direct-deposit system. If you are receiving this message, you have not submitted the required form in order to have your paycheck deposited into your account. Please complete the attached document and return by the close of business today.

You cannot be paid until this data is entered.

Learn More From Michael Bazzell The attachment with this message would be a malicious during his keynote DOC or PDF file that would not raise any red flags. When you open it, your machine becomes infected and I would presentation at the have remote access to your data. I would send this email from the name of someone in your payroll division for that MML 84th Annual extra feel of authenticity.

Conference in Overall, these messages always contain three very specific elements: Branson, Missouri, • Scare Tactic: This could include a data compromise Sept. 17! (example 1) or payroll issues (example 2).

• Action Requested: This could include clicking a link (example 1) or opening a file (example 2).

• Familiarity: This could include familiar details (your software provider) or personnel (your payroll manager).

Ultimately, I will attempt to use your username and password combination on any business websites or social networks you may have access to such as online email providers or financial websites. If you use the same password for multiple services, I compromise all of them. Every day, several employees fall for these scams.

Be extremely cautious of unsolicited Protect your growing community! email messages. If anything seems out of Risk management is our priority. place, challenge the message. If it appears to be from a co-worker, call that person Mirma.org 573-817-2554 and verify the details. If it appears to be from a business partner, contact that entity Providing work comp, auto, property, liability coverages, through known valid channels and verify and so much more for municipalities since 1981.

Missouri’s Municipal Trust

www.mocities.com

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MML 84th Annual Conference Sept. 16-19, 2018 | Branson, Missouri MML Keynote Address: Michael Bazzell Protecting Your Organization From Computer Crime

Michael Bazzell Cyber Crime Expert

Michael Bazzell has been investigating computer crimes on behalf of the government for more than 20 years. During the majority of that time, he was assigned to the FBI's Cyber Crimes Task Force where he focused on online investigations and open source intelligence (OSINT) collection. As an active investigator, Bazzell has been involved in major criminal investigations including online child solicitation, child abductions, kidnapping, coldcase homicide, terrorist threats, and computer intrusions. Bazzell also serves as the technical advisor for the television hacker drama "Mr. Robot." His books Open Source Intelligence Techniques and Hiding from the Internet have been best sellers in the United States and Europe. Bazzell currently works and resides in Washington, D.C., and serves as an advisor for the privacy app Sudo.

Wednesday Breakfast Keynote: Patrick Ibarra Patrick Ibarra, a native of Gladstone, Missouri, is an entrepreneur of ideas and architect of innovation, who seeks to challenge the status quo of "we've always done it that way" and replace it with a progressive approach to continuous improvement. With experience as a city manager, he is co-founder and partner of the Mejorando Group.

Patrick Ibarra Co-founder/Partner Mejorando Group

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theReview July/August 2018

NEW Full Registration ($400) • Welcome Reception (2 drink tickets) • Keynote Presentation • Exhibit Hall Entry • Monday Box Lunch • Popcorn and Prizes • Tues. Bacon & Business Meeting • Tues. Awards Luncheon • Weds. Breakfast Buffet & Keynote

Welcome Reception Join us for a reception Sunday evening held in the Exhibit Hall. Network with exhibitors and colleagues while enjoying appetizers and drinks. Everyone is welcome!

Popcorn and Prizes!

After the conclusion of sessions on Monday, join us for popcorn and beverages in the Exhibit Hall. At 4 p.m., exhibitors will draw names for prizes.

Must be present to win.

Bacon and Business!

Kick off Tuesday morning with breakfast and add your voice to important changes proposed to the MML policy statement.

Awards Luncheon Join us for lunch and to honor Innovation Award winners along with other award recognitions.

Don’t Miss These Events!

Exhibit Hall More than 145 firms bring you the latest services tailored for local government success. Exhibits are open Sunday evening during the Grand Opening Reception, 5:30-7 p.m., and Monday, Sept. 17, 8 a.m. – 4:30 p.m.

MML Annual Conference Hashtag:

#MML18

MML 7th Annual Scholarship Golf Outing Join us for the MML Scholarship Golf outing on Sunday, Sept. 16, 2018. The tournament will be held at The Top of the Rock Golf Course in Ridgedale, Missouri. Check-in time is 11:30 a.m., with a 2 p.m. shot-gun start. Proceeds benefit the scholarship program established by the MML Board of Directors to assist those employed in municipal government with furthering their education. Separate registration is required. Learn more at www.mocities.com.

The Top of the Rock is a spectacular opportunity to play where the pros play. This 9-hole, par 3 layout is one of the finest. Typically the fee to play is $130.00 for 9 holes; however, the MML scholarship tournament is hosting this 9-hole tournament for $110.00 per person. The fee includes lunch, range balls and closest-to-the-pins on all holes. There are prizes just for playing. Participants also recive a pass to take a 40-minute tour of the Ozark mountains at another time.

Space is limited, so register soon.

Register online at www.mocities.com by Sept 7, 2018.

Event Contact: Tony Russo at (314) 435-3779 or email trusso@cmtengr.com

Annual Banquet Entertainment: Deuces Wild!

Deuces Wild!

Dave Eichholz and Ted Manderfeld are Deuces Wild Dueling Pianos. For more than 16 years they have traveled coast to coast in the U.S.A. and Mexico as the most sought-after dueling piano act in the country. Their high-energy mix of comedy, music and extensive audience participation makes this a show unlike any other! Clap along, laugh along and sing along with Deuces Wild!

www.mocities.com

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MML 84th Annual Conference Schedule At-A-Glance

Tentative Agenda

Sunday, Sept. 16 9 a.m.-4 p.m.

9 am 12 p.m.

1-3 p.m.

5 p.m.

5:30 p.m.

4:30-5:30 p.m.

5:30-7 p.m.

Tuesday, Sept. 18

CCFOA Advanced Academy MML Golf Tournament Registration Trust: How to Get it! Keep it...or Get it Back! (MGI) Nominating Committee (Open) Nominating Committee (Closed) New Attendee Reception Grand Opening Reception

Bacon & Business Meeting CONCURRENT (4) Budget Basics...and a Little Bit More (MGI); Wireless Deployment Legislation; Community Surveys; The Tax Reform Act and the Municipal Bond Market - Now What?

CONCURRENT (4) Harassment in the Work Place (MGI); Using Social Media to Educate and Communicate with Taxpayers; Data Driven Infrastructure Planning & Local Government; USDARural Development: Funding for Community Projects Awards Luncheon/Showcase CONCURRENT (4) Ethics (MGI); How and Why Census Data is Important for Growth; Defying the Odds; MACOG CONCURRENT (4) Sunshine Law (MGI); Active Shooter Training; CCFOA Session; $53 Million Questions: Who's Responsible for Finding Fraud (GFOA session) Reception Annual Banquet

Monday, Sept. 17 7:30 a.m.

9 a.m.

10:30 a.m.

11:30 a.m.

1 p.m.

2:15 p.m.

3:30-4:30 p.m.

4 p.m.

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CCFOA Breakfast MCMA Breakfast Welcome/General Session KEYNOTE: Protecting Your Organization from Computer Crime Michael Bazzell Networking & Coffee Box Lunch CONCURRENT (4) Development Incentives: the Risk, the Reward and the Big Picture (MGI); Creative Housing Solutions for Any City in MO; Winning at Wastewater: How Some Communities are Addressing, Affordability Using Nontraditional Solutions; Advanced Internet Search Techniques CONCURRENT (4) Revenue Sources and Fundamentals of Economic Development (MGI); Using your Code of Ordinance to Your Advantage; CCFOA Session; MCMA Session Popcorn and Prizes Exhibitor prize drawings

theReview July/August 2018

Wednesday, Sept. 19 7:30 a.m.

9:30 a.m.

Breakfast Buffet KEYNOTE: Revolutionizing Government in the 21st Century Patrick Ibarra Conference Adjourned

MML Business Advantage Program Sponsors Platinum Sponsor

NLC Service Line Warranty Program

Gold Sponsors

Curtis, Heinz, Garrett & O'Keefe, P.C. PFM Strategic Government Resources Stifel

Silver Sponsors

MIRMA Municode/Municipal Code Corporation CTS Group General Code Burns & McDonnell Gilmore & Bell, P.C. Piper Jaffray & Co. American Fidelity Institute for Building Technology and Safety (IBTS) ICMA-RC Missouri Department of Natural Resources’ Brownfields/ Voluntary Cleanup Program.

Missouri American Water Company Cochran www.mocities.com

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MML 84th Annual Conference MML Nominating Procedures The governing body of the Missouri Municipal League consists of the president, vice president, all past presidents who continue to hold elective office, 12 board members who are elected municipal officials and five board members who are appointed municipal officials. The Bylaws require there be at least one board member from each of the nine Missouri Congressional Districts, and no municipality can be represented by more than one board member (except officers and past presidents). Board members are limited to not more than two consecutive full terms. Officers (president and vice president) shall have served not less than one year on the board.

At the Annual Conference, nominations for president, vice president and board members are made by a Nominating Committee of not more than 11 municipal officials appointed by the president. The Committee holds an open session to explain the nominating procedures and to allow delegates to suggest names for nomination. The Committee then meets in executive session to prepare a slate of nominees. At least 24 hours before the Business Meeting, the Committee posts the slate of nominees. Within 10 hours of the Business Meeting,

other nominations may be made by petition signed by at least 10 municipal officials representing at least 10 municipalities.

The petition provision provides an open process within which interested municipal officials may challenge the Committee's nominees.

The Nominating Committee determines which members of the slate may be contested by the petition without jeopardy to the requirements of the Bylaws for the composition of the board. The vote in any contested election is by written ballot, and each member city present has one vote.

The board of directors and membership have adopted an open and accessible nominating procedure. Municipal officials are encouraged to communicate suggestions to the Nominating Committee directly or through League headquarters. The committee members solicit input at the Annual Conference (where they are easily identified by ribbons) and at the open meeting of the Committee. Your MML nominating process is open and easy, but it is up to you to use it.

Previous Attendee Comments ...

"I love walking away with the feeling that I have learned something and can take that back to my city/community and share that info." " ... a great opportunity to network and learn."

"Excellent speakers and topics. This is one of my favorite conferences because I always come away with new information to help our city."

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theReview July/August 2018

MML 84th Annual Conference 2018 Resolutions Committee The 2018 Resolutions Committee of the Missouri Municipal League will meet prior to the Conference on July 19 to consider the recommendations of the four separate policy committees. The report of the Resolutions Committee will be made to the delegates at the business meeting during the Conference. Any municipal official desiring to have a specific topic considered should submit a proposed resolution to League headquarters as soon as possible. Any resolutions brought directly to the Annual Conference must be submitted 24 hours before the annual business meeting with copies (200) provided to the League’s president, the resolution’s chair and the executive director.

The statements recommended by the Resolutions Committee and approved by official vote of the League’s membership will become the “Municipal Policy Statement” for 2018-2019. This policy will provide the guidelines for the legislative program of the League, and direct the activities of the League’s staff during the 2018 session of the General Assembly.

Mayor Ken McClure of Springfield has been appointed chairman of the Resolutions committee for 2018.

Download the MML Mobile App for Conference schedules, maps, exhibitors, sponsors, handouts and more!

Scan the QR code below or search "Missouri Municipal League" in your app store!

MML Annual Conference Hashtag:

#MML18

www.mocities.com

27

Download MML's Mobile App Today! Event Updates Member News and Info MML Webinars

Social Media

Sessions and Speakers Scan the QR Code or search "Missouri Municipal League" in your app store.

Sponsored by Hamilton Weber, LLC

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theReview July/August 2018

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Connect With MML!

@mocities www.facebook.com/mocities www.linkedin.com/company/mocities www.mocities.com (573) 635-9134

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theReview July/August 2018

froz en p ipes

Does your community have the

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Evaluate the condition of – and prepare a strategic plan for – any needed infrastructure upgrades?

Manage and operate within today’s regulations – always keeping an eye on evolving trends for future changes?

Leverage water and wastewater operations for strong economic growth today and well into the future?

Recruit and retain high-quality, licensed operators – and hold them accountable for performance?

Follow a maintenance program designed to maximize current spending – and to delay or avoid future expenditures for replacements/rebuilds?

It’s not a matter of authority. It’s a matter of having the right people with the right knowledge and education available at the right time. This assures that your community’s water and wastewater systems work optimally today and tomorrow as a key asset to growth and viability. It just takes one bad storm, one miscalculation of chemicals, one misstep to set things on a course that is hard to recover from.

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LOCAL GOV Review

Missouri Mayors Meet With Governor Parson Over the last month, Missouri mayors from urban and rural areas have had the opportunity to meet with Governor Mike Parson and discuss issues facing communities of all sizes. Gov. Parson has been receptive to hearing municipal concerns and has expressed a desire to support mayors and their cities and towns. Topics discussed included eliminating the urban/rural divide, crime, work force development, rural broadband, economic development and infrastructure. Gov. Parson encourages communication with his office in order to share the issues and challenges communities face.

Working together for shared success.

As regulations continue to change, regionalization helps pool resources together for a cost-friendlier, more efficient approach. Discover how to ease the demands of regulations with regionalization at burnsmcd.com/MMLwater.

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theReview July/August 2018

Above Left: (l-r) Mayor Sly James, Kansas City; Mayor Tom Schneider, Florissant; Mayor Carrie Tergin, Jefferson City; First Lady Teresa Parson; Gov. Mike Parson; Mayor Karen Best, Branson; Mayor Brian Treece, Columbia; Mayor Kathy Rose, Riverside, Mayor Len Pagano, St. Peters.

Above Right: (l-r) Mayor Fred Wiedner, Lexington; Mayor Eddie Simons, Warsaw; Mayor Doyle Weeks, Holden; Rep. Glen Kolkmeyer; Mayor Adam Couch, Odessa; Gov. Mike Parson; Mayor Mike Wright, Richmond; Mayor Reed Dupy, Chillicothe; Mayor Michael Brown, Concordia; Mayor Adam Morton, Knob Noster.

LOCAL GOV Review

MML Elected Officials Training Conference June 7-8, 2018 Columbia, Missouri

www.mocities.com

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FAQ Review: Property Taxes

prepared by the Missouri State Auditor's Office

What is an ad valorem property tax?

These are commonly known as property taxes. Ad Valorem taxes are taxes that are based on the value of property.

What does the term “assessed valuation” mean and how is it different from “market value”?

Property is not assessed on the market value, or “true value.” Rather, the assessed value is the portion of the true value of the property. For personal property, the assessed value of property may not exceed 33.3 percent of its true value in money. For real property, residential property is assessed at 19 percent of its true value in money; agricultural/horticultural property is assessed at 12 percent of its true value; and utility, industrial, commercial, railroad and other real property is assessed at 32 percent of its true value

in money. Most personal property is assessed at 33.3 percent of its true value in money.

Is there a required date by which municipalities must have set their property tax levies?

Each political subdivision in the state, except charter counties and any political subdivision located at least partially within any charter county must set their property tax rates by Sept. 1 for entry in the tax books. Charter counties and cities not within a county (i.e. St. Louis city) must set their property tax levy by Oct. 1 of each year.

Is a public hearing required to set the levy?

Yes. Statute (Section 67.110) requires cities and villages to hold a public hearing on proposed tax rate increases.

Notice must be given via newspaper publication at least seven days prior to the date of the scheduled hearing, or such notice shall be posted in at least three public places.

What needs to be in the notice of the public hearing?

Section 137.055.2 of the Missouri Revised Statutes requires the following to be included in the published public hearing notice: The aggregate assessed valuation of real, total personal and other tangible property in the county by category for the fiscal year in which the tax is to be levied.

The aggregate assessed valuation of real, total personal and other tangible property by category for the preceding taxable year.

The amount of and purpose for the money to be raised by the tax levy as approved in the budget.

The proposed rate of taxes that will effectively produce the same revenues required by the budget.

The increase in tax revenue that will be realized due to an increase in assessed value from new construction/ improvement.

Experts in Municipal Bond Financing

Martin Ghafoori | (314) 342-8467 | ghafoorim@stifel.com Lorenzo Boyd | (314) 342-8477 | lorenzo.boyd@stifel.com Becky Esrock | (314) 342-2923 | esrockb@stifel.com

501 North Broadway | St. Louis, Missouri 63102 Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE | www.stifel.com/publicfinance

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theReview July/August 2018

The increase (in dollar and percentage) of tax revenue from reassessment if the proposed tax rate is adopted.

What’s the difference between the maximum authorized tax rate and the tax rate ceiling provided by the state auditor?

The maximum authorized rate is the greater of the 1984 tax rate or the most recent voter approved tax rate. Political subdivisions may not impose a tax greater than the maximum authorized levy without voter approval.

The tax rate ceiling is the maximum tax rate allowed by state law in the current year. Under the Hancock Amendment, when property increases in value by a larger percentage than the consumer price index, the tax rates must be adjusted to yield the same amount of revenue as it would have been collected by the existing levy on the prior assessed value. The new adjusted rate becomes the tax rate ceiling for the current year.

Do increases in assessed valuation require a property tax “roll back”?

Yes. A political subdivision may not impose a tax greater than its current tax rate ceiling. When the total assessed valuation within a political subdivision increases, as often happens as a result of reassessment, the political subdivision is allowed an increase in revenues to account for inflation, plus the revenues it receives from the taxes on new construction and improvements. After these inflationary factors, the governing body of each political subdivision is required to then “roll back” the tax rates to take in no more than substantially the same income it would have received in the prior year under that year’s rate. The inflation factor used by the political subdivisions (not including new construction) is either 5 percent or the Consumer Price Index as certified by the Missouri State Tax Commission, whichever is less.

A rollback is not required for debt service levies.

If a city voluntarily lowers the tax rate to below the ceiling rate can it be raised back to the ceiling rate? Does it matter if this is a year of reassessment?

If in an even numbered year (a nonreassessment year) the political subdivision wishes to no longer use the

voluntarily lowered tax rate ceiling to calculate its tax rate, it can hold a public hearing and pass a resolution, a policy statement, or an ordinance justifying its action before setting and certifying the new tax rate.

Is a vote of the people needed to increase the property tax rate above actual tax rate? And what would be the timeframe for implementation of an increased levy?

Yes. Tax rates may be increased above the tax rate ceiling with a vote of the people up to the rate allowed by statute. For tax rates to take effect for the current year levy, the rate must be passed before setting the tax rate to be included in the tax rate calculations.

Can municipalities establish different levy rates for different property classifications?

Only in limited circumstances can municipalities vary the tax levy rate based on a property’s classification.

Most municipalities may only impose a single rate. Single rate tax levies do not establish different levy rates for different property classifications.

Multi-rate tax levies, that are currently authorized for most St. Louis County political subdivisions, as well as for the city of Gladstone located in Clay County, can establish different levy rates for each of the following property classifications: real, agricultural, commercial and personal property.

Are there other municipal property tax levies besides the general levy?

Yes, there are multiple. Examples include parks, libraries, hospitals, public health and museum tax levies.

www.mocities.com

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GETTING TO KNOW YOU as a whole. I desired change, and decided that the best place to start was to serve the citizens - to cause an awakening that we all are responsible for, and should all be participants in, making the community flourish, thrive, and do well. Therefore at the end of the day, I decided to let it begin with me.

What has been the toughest lesson you have learned during your career in local government?

Shelly Moore Ward 2 Representative Cape Girardeau, Missouri

What sparked your interest in local government?

Moore: I wanted to see change and decided to take action. For more than 40 years I've witnessed and experienced, whether intentional or unintentional, a system that divides the community economically, socially and culturally. These practices impeded growth for all citizens. I felt that it needed to be addressed by someone who had been impacted by this process.

I thought I could shine a light on how divisiveness impacted the community

Moore: I've learned that my vision will take time. Maya Angelou once said "All great achievements require time." I've learned that as a citizen coming into the political arena as a novice, while I might have a vision that I would like to achieve, it cannot be achieved until I understand the process and the length of time it will take to bring the vision to fruition. The most important and vital need is to be patient, steadfast and unmovable which is the foundation to accomplishing any goal.

What advice would you offer to someone considering service as a local government official in their community?

Moore: To remember that politicians are elected citizens, and as an elected citizen you will be held to a higher standard. As an employee, you will need to be informed, knowledgeable and experienced when working with citizens.

Hochschild, Bloom & Company LLP Certified Public Accountants Consultants and Advisors

Governmental Services Financial audits Fraud and forensic accounting Employee benefits Budget assistance Auditing and assurance

Policies and procedures Internal control reviews CAFR consulting Interim support Monthly accounting

Chesterfield (636) 532-9525 Washington (636) 239-4785 www.hbclp.com

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theReview July/August 2018

In your opinion, what are the most important issues facing local government today?

Moore: Leaders with no integrity.

Politicians that don't appear to have the best interest of their constituents and the lack of communication with the people who need them the most.

How would you describe your city to someone who has never visited?

Moore: The city of Cape Girardeau is still known to many as the “City of Roses on the Riverfront.� We are the largest city between Memphis, Tennessee, and St. Louis, Missouri, on the I-55 corridor. We connect to Illinois via the Bill Emerson Bridge, one of the prettiest bridges in America. We have beautiful homes and we welcome the students of Southeast Missouri State University and its gorgeous River Campus. We have a growing and beautiful downtown with scenic views of the mighty Mississippi.

Cape Girardeau is a multi-cultural mid-size town with lots of recreational activities and scenic parks including wonderful trails and the famous Trail of Tears State Park. You would enjoy your visit and maybe even make it the place you call home!

What are your interests outside of local government?

Moore: The rebuilding of families. I am a music producer and recording artist. I also enjoy crafting, motivational speaking and socializing.

Where would you most like to travel, and why?

Moore: Africa, because of my ancestors and the beautiful cultures that occupy the continent.

GETTING TO KNOW YOU In your opinion, what are the most important issues facing local government today?

DeClue: The most important issue is loss of local control in the face of state and federal mandates and laws. Local government used to be the hotbed of government innovation. You could test ideas locally that could then be modified for use at the state and eventually national level. Today cities are increasingly facing “one size fits all” approaches on too many issues. Let cities innovate and learn the lessons necessary to refine ideas for broader application.

Ben DeClue Assistant City Administrator Lebanon, Missouri

What sparked your interest in local government?

DeClue: I was always interested in public service. When a seat on my hometown (Crystal City) city council was opening up, I was encouraged to run. I did so and served two terms. Toward the end of my tenure, I helped hire our first professional city administrator. Between that experience and being good friends with a city administrator in a neighboring town, I adjusted my career path and went into city management.

What has been the toughest lesson you have learned during your career in local government?

DeClue: If you want the truth about a person, project or idea to reach the community, you have to put it out there and aggressively defend it yourself.

People will always chase a perceived controversy, regardless of the merits of the argument.

My second issue would be the viciousness of social media and anonymous internet forums. The attacks on local government by people on social media and especially anonymous internet forums - some of them are unfortunately run by local media- has gotten out of control.

People are afraid to run for office or apply for staff positions. Something needs to be done, because ignoring it has not made it go away.

MML would like to learn more about your local government career! If you would be interested in participating with the Review's "Getting To Know You" feature, contact Laura Holloway at Lholloway@mocities.com.

What are your interests outside of local government?

DeClue: I have three great passions in life: Mizzou football and basketball, board and strategy games, and television.

Where would you most like to travel, and why?

DeClue: I have always wanted to do a tour of Russia. As a kid it seemed so closed and mysterious. It’s my understanding that Siberia is absolutely beautiful.

What advice would you offer to someone considering service as a local government official in their community?

DeClue: Do it. It is highly rewarding and a great way to make a difference in the world. Just don’t read the comments …

How would you describe your city to someone who has never visited?

DeClue: Lebanon is a town that makes things, from aluminum boats to electrical components. Our political and professional leaders have also made a lot happen for the community over the years, putting Lebanon in a very enviable position for future growth and development.

www.mocities.com

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MEMBERS' Notes City Clerk Honors

MML 2018 Calendar of Events July 20-22 ����� Missouri Municipal Attorneys Association Annual Meeting, Osage Beach, Missouri 26 ����� MML Webinar: Trust Building Strategies For Leaders 26 ����� MML West Gate Civic Leadership Banquet, Independence, Missouri

August 8 ����� MML Webinar: Census Tools 17 ����� MML Board of Directors Meeting, Old Kinderhook, Camdenton, Missouri

September 10-12 ����� Missouri Highway Traffic, Safety and Blueprint Conference, Columbia, Missouri

Congratulations to the following Missouri city clerks on receiving the Missouri Registered City Clerk (MRCC) designation: Courtney Crowson, Fulton; Barbara Chappell, Golden City; Kari Standley, Bloomfield; Cindy Robbins, Nixa; Sheree Leamon, Breckenridge Hills; Karen Rost, Marshfield; and Theresa Phyl, Crestwood. City clerks earn this designation by attending educational classes and writing papers based on what they have learned.

The next level of Missouri certification, Missouri Registered City Clerk Sustaining, was achieved by Sarah Wheeler, St. James. Congratulations Sarah!

On the international certification level, Sheila Smail, Maryville, received the designation as Master Municipal Clerk.

Congratulations Sheila!

15 ����� Financial Disclosure Ordinance Deadline 16 ����� MML 7th Annual Scholarship Golf Outing, Branson, Missouri 16-19 ����� MML 84th Annual Conference, Branson, Missouri

West Gate Officers

October

At the recent West Gate regional meeting in Harrisonville the following new officers were elected: President, Mayor Brian Hasek, Harrisonville; Vice President, Mayor Pam Freese, Houston Lake; and Secretary, Alderman Gerri Spencer, Kearney.

17 ����� MML Central Regional Meetings, Sedalia, Missouri

18 ����� MML Northwest Regional Meeting, Lathrop, Missouri

25 ����� MML Southeast Regional Meeting, Jackson, Missouri 25 ����� MML West Gate Regional Meeting, Raymore, Missouri 30 ����� MML Southwest Regional Meeting, Bolivar, Missouri

Central Division Officers

November 1 ����� MML Northeast Regional Meeting, Hannibal, Missouri 7-10 ����� National League of Cities City Summit, Los Angeles, California

Find more events and details on www.mocities.com and in the MML monthly e-newsletter.

At the recently held MML Central division meeting in Higginsville the following new officers were elected: President, Council Member Jeff Leeman, Sedalia; Vice-President, Council Member Michael Trapp, Columbia; and Secretary, Council Member Megan Page, Sedalia.

Welcome New MML Members! @mocities www.facebook.com/mocities www.linkedin.com/company/mocities www.mocities.com (573) 635-9134

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MML is happy to welcome two new member cities: South Greenfield Village of Aullville

www.mocities.com

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